The Communications Authority of Kenya (CAK) has warned the public against using unlicensed couriers such as some Public Service Vehicles (PSVs) and e-commerce players to send parcels or other tangible packages. 

• •Under the law, providing such services without a license incurs a Ksh. 300,000 fine and a year imprisonment.
• •Many PSV companies, particularly those providing long distance transport services, also offer parcel deliveries. 
• •The regulator argues that using licensed providers will provide “security of prescribed complaints resolution and compensation mechanisms.”

“Members of the public are [] advised to engage the services of licensed postal and courier operators to ensure the safety of their items and mitigate other risks associated with engaging unauthorized service providers,” CAK said in a statement on April 24. 

According to the regulator’s register of licensed operators, there are 54 international companies and 261 national companies licensed as couriers as of January 2023. The list includes international freight operators, PSV companies, media companies, SACCOs, cab companies, and e-commerce start ups. The regulator recently shut down six courier companies as part of a regulatory sweep, although it was unclear why they were deregistered.

“The registered providers can’t make their services easily accessible and efficient than use the regulator to stifle the entrepreneurial spirit of Kenyans. Why can’t you CA think of how to expand this market and register them with affordable fees instead to create more jobs?” A user in X (formerly Twitter) said.

While the safety of parcels is a concern, courier and logistics companies are relatively expensive compared to PSV operators and other informal players. A user complained that they would rather pay Ksh. 300 to transport their bag of maize from Kitale using a PSV, than pay Ksh. 2,000 for the same service using a licensed private courier. It is also unclear whether the directive from CAK will affect reasonably short-distance package transport, or the informal courier services provided by individual Boda Boda riders.

The Posta Question 

In January, Cabinet Secretary for ICT Eliud Owalo challenged public postal operator Posta to transform into a digital courier that Kenyans can rely on in the 21st century. According to the CS, the government will help Posta upgrade its existing infrastructure and motivate its staff by resolving ongoing salary delays. 

“We are on the verge of acquiring a partner by way of e-commerce platform and at the tail end of acquiring a service provider for a payment gateway,” said CS Owalo in a radio interview this year. 

The CS also said that the government intended to direct all public sector services to utilize Posta’s e-commerce services. This follows another directive that was recently issued by the same ministry, advising all government departments with electronic advertisements to place them at the state broadcaster KBC. These restrictions are desperate attempts to turn around the ill-fated fortunes of these entities without resorting to privatization.